International Data Systems' information on revenue and costs is relevant only up to a sales...
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Accounting
International Data Systems' information on revenue and costs is relevant only up to a sales volume of 108,000 units. After 108,000 units, the market becomes saturated and the price per unit falls from $20.00 to $11.80. Als there are cost overruns at a production volume of over 108,000 units, and variable cost per unit goes up from $10.00 to $10.25. Fixed costs remain the same at $58,000. a. Compute operating income at 108,000 units. Operating income b. Compute operating income at 208,000 units. Operating income
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